Good neighbors

Funkadeli had to make a downpayment equivalent to six months’ rent. Furnishings were acquired from a store on Aomen Road, and the bar opened in August 2013. The bar specializes in Campari — and Aperol — based aperitifs, and Spritz drinks from Venice.

Like Starbucks, they make about one-quarter of their revenue from food. Noise levels on the street have grated with second-storey residents, several of whom dumped water on a crowd below in March 2013.

Funkadeli soundproofed its walls to keep the peace. Other measures to keep the mostly Chinese neighbors happy include a 10 pm curfew, when patrons get shuffled inside, and a recent ban on parking mopeds on the street.

Funkadeli ran into competition when the half-unit next door reopened as a deli, but they responded aggressively by snapping up the lease in March, stripping away the fridges and shelves, and adding low-seating tables and a small bathroom.

"That had a big impact on our profitability. The increase in size is directly proportional to the increase in revenue," says Farinati.

The four partners divide the labor into accounting, operations, branding, and human resources and marketing. Most of their marketing is done through WeChat Moments, but expect official WeChat, Website and Facebook pages soon.

The biggest challenge when starting out was "nailing the concept", says Testi, especially when two grocery shops sprang up nearby in the following months. "Do business with people you look up to and trust, and hire a good human resources person," he says. "It’s hugely important, because whoever you hire will be key to your success."

IF YOU GO

Funkadeli Address: 46 Yongkang Road

Funkadelino Address: 356 Xikang Road (near Xinzha Road)

Telephone: 021-3206-0097